China has proposed new export controls on 23 artificial intelligence technologies. The rules could change how DeepSeek and other Chinese AI companies sell their technology to international customers.
Under the proposed rules, foreign businesses could continue using Chinese AI models through websites, apps and cloud services. However, transferring the technology behind some advanced models overseas could face new restrictions.
On October 16, 2026, China’s Ministry of Commerce proposed adding 23 AI-related technologies to its export-control catalogue. These include advanced AI models, autonomous agents and computing clusters. Public consultation will remain open until November 15, 2026. Some registration requirements for overseas technology transfers have already taken effect.
A Reuters investigation published on October 28 reported on China’s emerging approach to controlling AI technology exports. The policy could help Beijing protect valuable technology while allowing Chinese companies to earn money from global customers.
The changes could affect companies such as DeepSeek, Moonshot AI and Z.AI, which have expanded their reach through downloadable models and online AI services.
China is not placing a complete ban on AI exports. Instead, the rules could separate access to Chinese AI services from the transfer of technology. Which allows foreign companies to run and control the models themselves.
China Wants to Control How Advanced AI Technology Leaves the Country
China is considering new restrictions on the export of advanced artificial intelligence technologies as part of a broader review of its export control rules. The proposed changes cover 40 technologies across artificial intelligence, biotechnology and solar energy. Of these, 23 are related to AI.
The list includes advanced language models, AI agents that can perform tasks with limited human supervision, chip design tools and technologies used to manage large computing clusters. China’s Ministry of Commerce says the proposed restrictions aim to protect national security and prevent sensitive technologies from being misused.
The ministry has also raised concerns about AI systems that can create or modify malicious software. Such tools could pose risks to critical infrastructure if used for cyberattacks. However, China does not intend to block all AI technology exports. Most AI technologies would remain eligible for export under the proposed rules.
This approach would allow Chinese AI companies to continue serving international customers while keeping tighter control over technologies that Beijing considers strategically important. The proposed restrictions could also help China protect valuable AI research and models while allowing domestic companies to generate revenue from overseas markets.
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Foreign Customers Could Use Chinese AI Without Owning the Models
China’s proposed AI export rules could distinguish between using an AI model and owning the technology behind it. Foreign customers may be able to access Chinese AI models through APIs, websites and cloud services.
This would let businesses use AI tools without owning or running the underlying models themselves. Transferring the technology is different. It could allow a foreign company to run, modify or reproduce an AI model independently.
Under the proposed rules, China would treat these two types of AI distribution differently. This could allow Chinese AI companies to serve international customers while maintaining greater control over their models and underlying technology.
| AI Distribution Method | Treatment Under China’s Proposal |
| Access through an API | Generally outside the model-technology export controls |
| Access through a website or application | Generally outside the controls |
| Access through a software-as-a-service platform | Generally outside the controls |
| Overseas deployment involving restricted technology | Subject to export-control requirements |
| Chinese-owned overseas computing center | Eligible for simplified licensing in qualifying cases |
| Publicly available research and existing open-source technology | Generally exempt from the proposed controls |
| Transfer of restricted AI technology to foreign ownership | May require registration or approval |
For example, a developer outside China could continue using a Chinese AI language model through an API. The developer would send requests to the provider’s servers and receive responses without downloading the entire model.
However, running the same model independently could require access to its underlying technology. This type of transfer may face additional regulatory requirements under China’s proposed AI export rules.
This approach is similar to the business models used by major AI companies. They charge customers for access to their models while keeping control of the technology and computing systems behind them. China’s proposed rules would add another layer of control by allowing the government to regulate certain technology transfers.
For international developers, this could mean greater reliance on Chinese AI providers. It could also limit their ability to run some advanced models on their own servers. The actual impact will depend on which AI models are covered by the final rules and how Chinese regulators enforce the restrictions.
China’s AI Export Rules Could Affect DeepSeek, Moonshot AI and Z.AI
China’s proposed AI export restrictions could affect how companies such as DeepSeek, Moonshot AI and Z.AI distribute their models internationally. These companies offer downloadable AI models, APIs and hosted services. The new rules could change how they share future models with overseas customers.
According to Reuters, researchers at major Chinese AI labs are seeking clarity on whether advanced models can be trained or run on servers outside China. This matters because some Chinese AI companies rely on overseas computing facilities to access advanced chips restricted by U.S. export controls.
If moving certain models abroad requires government approval, companies may need to change how they train and deploy their AI systems. One possible outcome is that companies develop separate versions for Chinese and international markets.
However, no such requirement has been confirmed for DeepSeek, Moonshot AI or Z.AI. The impact will depend on the final rules and each company’s business model.
China Proposes Three Tests for Restricting Advanced AI Models
China’s proposed AI export rules include three criteria to identify advanced models that could face restrictions. These tests focus on training computing power, model size and performance.
| Proposed Criterion | Threshold |
| Training Computation | At least 10²? computational operations |
| Model Size | At least 2 trillion parameters |
| Model Performance | Ranking among the world’s top 10 in specified assessments |
However, applying these thresholds may not be easy. Some AI models contain trillions of parameters but use only a portion of them for each task. Other models achieve strong results with fewer parameters.
Chinese law firm Han Kun has raised questions about how regulators would measure model size for systems that use this approach. The performance test also remains unclear. The draft does not specify which rankings or assessments would determine whether a model qualifies for restrictions.
This could make it difficult for AI companies to know whether their models fall under the proposed rules. Even a smaller model could qualify based on its performance in a specific assessment.
Liu Jing, a senior partner at Beijing Dacheng Law Offices who took part in policy consultations, told Reuters that companies want clearer guidance on these tests. The final regulations and implementation guidelines will determine which AI models are subject to export restrictions.
China’s AI Export Rules Show Growing Competition With the US
China’s proposed AI export restrictions come amid growing technology competition with the United States.
Washington has restricted China’s access to certain advanced AI chips and semiconductor manufacturing equipment. These measures aim to limit China’s access to computing technology that could support military applications and advanced AI development.
China’s proposed rules focus on a different area. Instead of limiting the technology Chinese companies can acquire. Beijing wants greater control over which advanced Chinese technologies can be transferred to foreign organizations.
Yang Jingru, a partner at Chinese law firm Jincheng Tongda & Neal, described the approach as a counterpart to US restrictions on computing hardware, investment and other technologies.
The two countries are focusing on different parts of the AI industry. The US has targeted China’s access to advanced chips. Meanwhile, China is considering tighter controls on the overseas transfer of AI models and technical knowledge.
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Beijing says the proposed rules would allow legitimate technology exchanges to continue. They would also prevent sensitive technologies from being transferred without proper oversight. The measures show that advanced AI models are becoming strategic assets. They are also playing a growing role in the technology competition between China and the United States.
China’s Open-Source AI Strategy Could Face New Restrictions
Chinese AI companies have gained global attention by releasing models that developers can download and run on their own systems. These models allow researchers and businesses to modify the technology and build applications without relying entirely on the original provider.
This has helped Chinese AI models compete with proprietary systems that customers access through paid APIs. However, China’s proposed AI export rules could make it harder to distribute some advanced models internationally.
If transferring certain technologies requires government approval, companies may prefer to offer access through APIs and cloud services instead of allowing customers to download the models. This could push some AI companies toward subscription services and API-based revenue.
However, China’s Ministry of Commerce says technology already available through public research or open-source releases would generally remain outside the proposed restrictions. The draft also includes simplified procedures for eligible open-source technology exports.
This shows that China doesn’t plan to stop open-source AI development entirely. Instead, the government wants greater control over the export of certain sensitive technologies.
Some Chinese AI models could remain freely downloadable, while others may become available mainly through hosted services. The final rules will determine how these changes affect AI developers and international users.
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MiniMax Completes AI Technology Export Registration in China
Chinese AI company MiniMax has taken an early step to meet China’s technology export requirements. On October 23, MiniMax announced that it had completed a technology export registration with China’s Ministry of Commerce.
According to Reuters, the registration covered the open-source release and overseas licensing of certain recently released and upcoming AI models. The move shows that Chinese AI companies can continue to distribute models internationally while following export requirements.
However, MiniMax has not disclosed full details about the models covered by the registration or the conditions governing their use abroad. This also shows why AI companies may need to consider export rules when planning new model releases and licensing agreements.
How China’s AI Export Rules Could Affect Global Data Centers
China’s proposed AI export rules could change where Chinese AI companies train and run their models. Some developers use overseas data centers to access advanced processors and support international operations.
The new rules could affect how they transfer AI models between facilities in China and other countries. For example, moving a restricted model to a foreign-owned data center could face different requirements from running it at a facility operated by the Chinese company itself.
China’s proposal offers simplified licensing for certain overseas computing centers run by Chinese companies. However, it does not provide the same clear treatment for transfers that allow foreign customers to build and operate similar systems independently.
This could encourage Chinese AI companies to maintain greater control over their overseas infrastructure. It could also affect partnerships involving AI model hosting, technology licensing and joint development. The final rules will determine how these requirements affect international operations and compliance costs.
Foreign Investment in Chinese AI Could Become More Complicated
The proposed rules could also affect foreign investments and acquisitions involving Chinese AI companies. Reuters reported that China introduced registration requirements on October 16 for certain transfers that put Chinese technology under foreign ownership or control.
This means the rules may cover more than AI models and cloud services. They could also apply to deals involving valuable AI technology and intellectual property. Foreign companies planning to buy a Chinese AI business may need to check whether the deal involves technology covered by the restrictions.
International partnerships could also face additional checks if they involve the transfer of sensitive technology or control over key assets. Governments are paying closer attention to AI investments because of their potential national security risks. This could make it harder for foreign investors to determine which deals need regulatory approval.
However, the proposed rules do not ban all foreign investments in Chinese AI companies. The requirements would depend on the technology involved and the details of each transaction.
How China’s AI Export Rules Could Affect Global Developers
Developers outside China may see little immediate change under the proposed rules. The proposal generally excludes access through APIs, websites and software-as-a-service (SaaS) platforms from the specific controls on AI model technology exports.
This means developers could still use hosted Chinese AI services to build their applications. However, downloading and running AI models independently could become more difficult. Some businesses prefer to run models on their own systems. This gives them more control over costs, data security, customization and access.
These benefits are important for companies that must follow strict privacy rules or industry regulations. If advanced Chinese AI models become available mainly through hosted services, developers may have to rely more on the companies that provide them. They could face changes in pricing, service availability or access policies.
They may also have fewer options to modify models or study how they work. Hosted AI services have their own advantages. They allow businesses to use powerful models without buying expensive computing equipment or managing the infrastructure themselves.
The impact will depend on each company’s needs. Some businesses may see little difference, while those that rely on downloadable AI models may need to reconsider which systems they use once China finalizes the export rules.
Could China Earn More From Hosted AI Services?
China’s proposed rules could encourage AI companies to earn more from hosted services instead of downloadable models.
When companies release model weights, developers can run the models on their own systems without paying for every request. Providers may still earn money through licences and support, but they have less control over usage.
Hosted services work differently. Customers pay to access models, allowing providers to earn recurring revenue while keeping their technology private. This approach could help Chinese AI companies reach global customers while protecting valuable technology.
However, downloadable models have helped Chinese developers attract users worldwide. Strict limits on their distribution could slow adoption.
Companies may choose a middle ground by releasing some models publicly while offering their most advanced systems through paid services. However, this remains a possible business strategy, not a confirmed requirement under the proposed rules.
China Is Changing the Rules of the Global AI Race
China’s proposed export rules could change how its AI companies compete with US developers. Until now, much of the debate has focused on whether Chinese companies can access enough advanced chips to build powerful AI systems.
Beijing is now looking at another issue: how much of its AI technology foreign companies should be allowed to control. The proposed rules suggest that China wants its AI companies to reach global customers while keeping sensitive technology under tighter control.
This could affect downloadable models, overseas data centers, international partnerships and foreign acquisitions. It could also push more businesses towards hosted AI services instead of running models on their own systems.
However, the rules are not final. Public consultation runs until November 15, and companies will need further guidance to understand how the restrictions will apply. China is not proposing to stop foreign users from accessing its AI services.
Instead, the focus is on controlling the transfer of technology behind certain advanced AI systems. This approach could influence how Chinese and American AI companies compete in global markets.